The Ultimate Guide to 3PL Fulfillment Costs

Guide to 3PL Fulfillment Costs

Ever thought about investing in a 3PL fulfillment service? Want to know how much will it cost? Let us walk you through the charges at every stage of a fulfillment services.

Third-party logistics services allow companies to outsource their worries about the critical supply chain process. A supply chain process consists of storing inventory, picking, packing, inventory management, shipping, secure delivery, and all around it. This system has crucial elements, and when you outsource it to third-party logistics, it comes with various benefits. Thus, you must be ready to outsource your business to a reliable third-party fulfillment center.

While investing in a 3PL provides added benefits, there are multiple things you must consider before opting for it. One of the many important things is cost.

There are critical operations at every stage of a fulfillment center, and with it, there are multiple costs attached. The value-added services you ultimately choose to utilize will be a primary factor in determining your 3PL cost.

  1. Receiving: This includes costs from receiving goods to unloading them to the storage unit.
    • Bill by line, piece, order, or at a flat rate.
  2. Storage: This includes utilizing warehouse space to store inventory.
    • Charge per square foot or pallet
  3. Inventory Management: This includes management of your entire inventory, confirming that records match the physical count of goods, security, and temperature-control of specific products.
    • Charges vary by provider.
  4. Picking and Packing: This cost contributes to fetching goods from storage to fill orders and packing them to ensure safe transit.
    • Charged by piece, order, or included in total costs
  5. Knitting: It includes packaging of similar or partially similar goods together.
    • Charged by hour, kit, or project
  6. Sorting: This calls for the arrangement of different SKUs for shipping
    • Charges vary according to the provider.
  7. Shipping: This includes loading and checking goods for transport. This cost depends on the mode of transport and the type of shipping you choose.
    • Bill depends on the mode of transport.

Factors Affecting the Cost of 3PL Services

  • Dedicated Warehouse space according to the goods and pallets
  • Number of orders processed annually
  • Hazardous material considerations
  • Inventory value estimation
  • Stock rotation considerations
  • Specialized handling and other labor needs
  • Temperature requirements for products
  • Average order size
  • SKU count
  • Special transport requirements
  • Number of shipments per year
  • Warehousing insurance needs

And much more!

Also Read: 5 Tips To Get The Best Pricing From A 3PL Provider

Every business aims to cut costs wherever it can. So, before you opt for any fulfillment center services, ensure that you compare their prices with in-house fulfillment.

With in-house fulfillment, it’s you who’ll be in charge of every process starting from inventory storage to secure shipping, and tackle the many challenges come with it. In order to expand your business, handing out the fulfillment responsibilities to a 3PL is a much better idea than doing everything in-house.

FHU – Your Ideal E-Commerce Fulfillment Partner That Makes Shipping & Managing Inventory As Easy as Selling

Fulfillment Hub USA is your reliable, cost-saving 3PL partner. We are a tech-driven fulfillment hub, working towards easing the supply chain process for your business with our team of experts and 24/7 security. Get a quote today!

Anjali

She is an avid reader turned content creator. She has over 4 years of experience in writing B2B and B2C website content, articles, and social media content. She has worked with different types of content; from tweets to full-fledged video scripts and privacy policies. Apart from reading and writing, she connects with plants, travelling, and psychology.

Leave a Comment

Your email address will not be published. Required fields are marked *